Minda Corp order book reaches all-time high in FY24

Minda Corporation, the flagship company of Spark Minda, recorded its new all-time high order book of above Rs 10,000 crore as of March 31, 2024, surpassing FY23 order wins of Rs 8,000 crore, a senior company official said. 

He notes this as a reflection of the company's expanding product portfolio, product premiumisation across segments, and growing demands across customers for ICE and EV products. 

The order wins in FY24 included multiple first-time-ever orders for new technology products across ICE and EV segments in the areas of diecasting, wiring harnesses, vehicle access, and instrument clusters from key domestic and export customers. 

At present, the potential EV kit value of the Gurugram-based company stood at Rs 22,000–Rs 27,000 in Q4 FY24, of which roughly Rs 8,000- Rs 10,000 are new power electronic product lines commercially launched during the last fiscal year. In FY24, EV constituted 5–66% of the company's revenues. 

“The share of replacement and new businesses in the new order wins is 50:50. While the replacement orders will lead to stable revenues, the high share of new business orders will lead to incremental sales post the SOP (start of production), which is generally about 12 to 24 months after winning the orders,” Aakash Minda, Executive Director of Minda Group, said during an earnings conference call. 

During Q4 FY24, the company secured lifetime orders worth roughly Rs 2,000 crore, with EVs constituting over 30% of the orders. Additionally, Minda Corporation also filed 26 new patent applications in the last fiscal year, bringing its total patents to over 270. “We have been granted 69 new patents across various business verticals, the highest ever in an annual year to date,” Minda added. 

The company has also entered into two strategic partnerships in FY24 with Taiwan-based HCMF and a prominent Japanese two-wheeler firm to manufacture automotive sunroof  and closure systems and smart key systems, respectively. The HCMF  joint venture will offer a full system solution ranging from design, development to the manufacturing of sunroofs for passenger vehicles in India. 

The second JV with a Japanese original equipment manufacturer will leverage Minda's prowess in delivering cutting-edge solutions, with the manufacturing set to take place at Spark Minda's advanced facility in Pune, the company earlier said in an official release without identifying the Japanese firm.

“These partnerships enhance our technological capabilities and re-enforce our position as a comprehensive mobility solution provider,” the ED said over the call. 

It has also inaugurated a smart key facility in Vietnam, strategically positioned to serve customers in the ASEAN region. In India, new facilities are under construction for manufacturing smart keys, diecasting parts, clusters, and sensors.

"We maintain a positive view on the company as it will be a key beneficiary of product premiumisation, EV growth, a richer product mix on account of increased businesses from CV and PV OEMs, and growth opportunities via organic and inorganic routes in the future. Going forward, the company’s growth story is driven by new order wins, increasing kit value per vehicle, and its focus on EV," brokerage firm Axis Securities said in a recent report on Minda Corporation.